No Chip Shortage: China Lifts Ban on Export of Semiconductors for Cars

Automakers can breathe a sigh of relief: China has lifted export restrictions on Nexperia chips, as well as materials used for their production.

What is Known

The Chinese government confirmed on Sunday that it would allow the export of Nexperia products, whose chips play a key role in car manufacturing. The company's products are used in Volkswagen, Mercedes-Benz, Nissan, BMW, and other global manufacturers' vehicles. Semiconductors are used in various components, from vehicle electronic control units (ECUs) to safety and infotainment systems.

EU Commissioner for Trade and Economic Security Maroš Šefčovič stated in X that Beijing agreed to simplify Nexperia chip export procedures and exempt any exporter from licensing, provided the goods are for civilian use.

Context

Nexperia (headquartered in the Netherlands) supplies semiconductors to much of the European automotive industry, but its parent company Wingtech Technology is partially owned by the Chinese government. More than two-thirds of Nexperia chips are produced in Europe; however, a significant portion of them reach customers via China.

In September 2024, the Dutch government took control of Nexperia, replacing CEO Zhang Xuezheng with a non-Chinese national manager. As expected, this caused dissatisfaction in China: Beijing banned the export of Nexperia chips, which prompted further concerns in the industry.

The previous semiconductor shortage began during the COVID-19 pandemic, was exacerbated by geopolitical factors, and affected a wide range of goods — from PlayStations to washing machines. The chip shortage also led to temporary production stoppages at car factories: MINI, Renault, and even General Motors in North America.

Source: Auto Express